Monday, May 04, 2009

Opposite of Pro? Con; What's Opposite of Progress?

A major lesson of Fan and Fred and the subprime fiasco is that no one benefits when we push families into homes they can't afford. Yet that's what Congress is doing once again as it relentlessly expands FHA lending with minimal oversight or taxpayer safeguards.~Wall Street Journal staff editorialGiven the current housing crisis, there is wide support for measures to make it easier for homeowners to modify their mortgages. That is understandable. Nobody likes seeing the wave of foreclosures. Plus, mortgage modifications may help stabilize home values.But in the rush to do something, Congress is showing a regrettable willingness to adopt constitutionally suspect legislation that runs roughshod over the Fifth Amendment of the Constitution, which prohibits the taking of private property without just compensation.~Wall Street Journal Editorial by Eric Brenner and Hamish Hume

4 Comments:

The Fifth Amendment of the Constitution...prohibits the taking of private property without just compensation.This is simple to get around for Congress. They simply deem that they or their assigns are the only one capable to determining "just compensation."

It is interesting to contemplate the complications that arise from changing the rules on second mortgages in an attempt to help .

Foreclosure and bankruptcy actually start to look sensible options by comparison. Painful to the individual, certainly but with far less damaging consequences to the entire legal framework of contracts, and property rights.

Bold and insightful post; The professor’s clarity on the issue and the truth-it brings to bear on the prospects for the future give us all reason for hope The question is: Are people ready to hear the good news yet? I for one AM!